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Feb 19 2019, 06:30 GMT
The importance of Greencoat’s successful 2018 should not be underestimated. The group enters 2019 on an established footing, with annual NAV growth likely to be at the upper end of its 1-2c targeted range (Davy 2019F NAV +2.1c). Its progress is even more encouraging in the context of an ever-expanding opportunity set both at home and abroad. Our analysis suggests that its Irish portfolio could more than double to 832MW. The Continental Europe opportunity is also emerging. Scope to add a further 555MW would see the company’s ultimate portfolio approach 1.4GW, equating to 2023F NAV/share of 129c. We estimate Greencoat to be worth 131c/share on a total shareholder return basis and reiterate our ‘Outperform’ rating.